From 1 July 2017, the existing annual non-concessional contribution cap will be reduced from $180,000 to $100,000.
The Government had previously announced it was removing the annual cap in favour of a proposed retrospective
lifetime limit of $500,000 but this was not passed. So if you’re under 65, you can still bring forward three
years’ worth of after-tax contributions, which means you can contribute up to $300,000 in a single year until
your balance reaches $1.6 million (see below).
From 1 July 2017, the concessional (pre-tax) contribution cap will be reduced to $25,000 a year for everyone,
down from $35,000 for people aged 50 and over, and $30,000 for people under 50 in 2016/17.
If you’re nearing or in retirement
From 1 July 2017, there will be a $1.6 million cap imposed on the total amount of superannuation that can be
transferred to a tax-free superannuation pension account.
From 1 July 2017, the investment earnings of transition to retirement pensions will no longer be tax-free.
A concessional (pre-tax) rate of 15% will apply from this date. You can still use transition to retirement to
work less or save more, but the tax benefits will change.
From 1 July 2017, more people aged 65 to 74 will be able to make non-concessional (after-tax) superannuation
contributions personally or for their spouse, with the removal of the ’work test’. The ’work test’ is the current requirement for people
aged 65 to 74 to have
worked for at least 40 hours over 30 consecutive days in the financial year they wish to make a contribution.
If you’re a lower income earner
From 1 July 2017, people earning up to $37,000 per year will receive an automatic Low Income
Superannuation Tax Offset capped at $500 per year. The offset will mean that lower income earners will receive a
refund into their super account of the tax paid on their concessional (pre-tax) superannuation contributions,
up to a cap of $500.
From 1 July 2017, people with super balances under $500,000 will be able to ’carry forward’ any unused
concessional (pre-tax) contribution capacity for up to five consecutive years.
From 1 July 2017, all people under age 75 will be able to claim a tax deduction for non-concessional (post-tax) super contributions.
From 1 July 2017, more people will be able to claim a tax offset for contributions made to their spouse’s super. The income threshold
for eligibility has been increased to $37,000 per year.
If you’re a higher income earner
From 1 July 2017, a higher tax rate of 30% on concessional super contributions will be paid by people
earning $250,000 per year. The higher rate currently applies if a person’s income exceeds $300,000.